LEXINGTON, KY - Lexmark International, Inc. (NYSE: LXK) today announced financial results for the first quarter of 2009 showing a decline in revenues of 20 percent compared to 2008.
In a press release, Lexmark officials said first quarter revenue was $944 million, compared to revenue of $1.18 billion last year. The company said weak global economic conditions negatively impacted demand for both hardware and supplies.
First quarter GAAP earnings per share were $0.75. Excluding $0.14 per share for restructuring-related activities, earnings per share for the first quarter of 2009 would have been $0.89. First quarter 2008 GAAP earnings per share were $1.07. Earnings per share for the first quarter of 2008 would have been $1.16 excluding $0.09 per share for restructuring-related activities.
"While EPS were above our expectation in the quarter, market conditions continue to negatively impact both Lexmark and the overall distributed printing market," said Paul J. Curlander, Lexmark chairman and chief executive officer. "Despite this, we are continuing to execute well on our key strategic initiatives to reach higher page generating segments of the market and to strengthen the company during this economic downturn.
"During the quarter we made good progress on our cost and expense reduction initiatives. Key strategic milestones during the quarter include the significant expansion of our laser line, particularly in laser multifunction devices and color, the expansion of our U.S. retail distribution, achieving growth this quarter in our branded high end inkjet all-in-ones, and the continuing good growth of our laser multifunction devices," Curlander said.
First quarter Printing Solutions and Services Division revenue of $599 million declined 19 percent year to year. Imaging Solutions Division revenue of $345 million declined 20 percent compared to a year ago.
In the first quarter of 2009:
Gross profit margin was 35.3 percent versus 37.1 percent in 2008.
Operating expense was $259 million compared to $313 million last year.
Operating income margin of 7.9 percent includes $13 million pretax restructuring-related charges. Operating income margin in 2008 of 10.4 percent included $13 million pretax restructuring-related charges.
Net earnings for the quarter were $59 million compared to first quarter 2008 net earnings of $102 million.
On a non-GAAP basis, excluding restructuring-related charges, in the first quarter of 2009:
Gross profit margin would have been 35.8 percent, down 1.7 percentage points from 37.5 percent in the same period last year, principally due to a decline in product margins.
Operating expense would have been $251 million, a reduction of 18 percent from last year primarily driven by reduced marketing and general and administrative expense.
Operating income margin would have been 9.3 percent, down from 11.5 percent last year.
Net earnings would have been $70 million, compared to $111 million in the first quarter of 2008.
The company said it ended the quarter with $811 million in cash and current marketable securities. First quarter net cash used for operating activities was $86 million. Capital expenditures for the quarter were $68 million. Depreciation and amortization in the quarter was $44 million. The company increased the funding of its worldwide pension and post-retirement plans with cash contributions of $79 million during the quarter.